SR-203-000-01
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CA:RMM:jld544/hpc
City Council Meeting 1-8-91
Santa Monica, california
TO:
Mayor and City Council
FROM:
City Attorney
Ordinance for Introduction and First Reading Amending
and First Reading Amending Chapter 6.5 of the Santa
Monica Municipal Code Relating to Revenue Bonds
SUBJECT:
This report recommends that the city Council introduce for
first reading the accompanying ordinance amending Chapter 6.5 of
the Santa Monica Municipal Code relating to the issuance of
revenue bonds.
The proposed ordinance amends in its entirety the present
city law that governs the issuance of revenue bonds. The
ordinance clarifies that the city will follows state law except
where noted.
The principal reason for amending the current City law is
to allow the city to issue revenue bonds for a broader range of
matters. The current City law is more restrictive than state law
and among other things prevents the City from issuing revenue
bonds that could be used to finance improvements to the city's
waste water handling and treatment facilities.
The amendment
permits revenue bonds to be issued for any purpose permitted by
state law, including improvements to the Hyperion water treatment
facility.
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JAN 8 :,;r,~
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In addition, the amendment expands the ways in which the
City can arrange for the sale of revenue bonds.
Under the
proposed change, the City can proceed by way of bid, negotiated
sale or any other agreement that the City Council determines to
be in the interest of the city.
Recommendation.
It is recommended that the accompanying
ordinance amending Chapter 6.5 of the Santa Monica Municipal Code
be introduced for first reading.
Prepared by: Robert M. Myers, city Attorney
Joseph Lawrence, Assistant City Attorney
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CA:RMM:jld534/hpc
City council Meeting 1-8-91
Santa Monica, California
ORDINANCE NUMBER
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AMENDING CHAPTER 6.5
OF THE SANTA MONICA MUNICIPAL CODE
RELATING TO REVENUE BONDS
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:
SECTION 1. Chapter 6.5 of the Santa Monica Municipal Code
is amended to read as follows:
Chapter 6.5 - REVENUE BONOS
SECTION 2650. Purpos... The city
council, exercising the powers reserved
to the Ci ty under sections 6 and 8 of
Article XI of the Constitution of the
State of California and section 400 of
the city Charter of the City of Santa
Monica may, when the public interest and
necessity require,
by resolution or
resolutions,
issue revenue bonds for
funds to acquire, construct, improve or
finance any enterprise as defined in
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Section
54309
of
the
California
Government Code.
SECTION 2651. Procedure.
(a) Except as otherwise provided
for in this Chapter, revenue bonds shall
be
issued
in
accordance
with
the
procedures of the Revenue Bond Law of
1941 (Chapter 6 of Part 1 of Division 2
of Title 5 of the California Government
Code, commencing with Section 34300), in
effect on January 2, 1991, the provisions
of which are incorporated into this
Chapter. Copies of the Revenue Bond Law
of 1941 (as in effect on January 2,
1991), are filed for convenience in the
office of the City Clerk.
(b) The provisions of the Revenue
Bond Law of 1941 set forth in sections
54380 throuqh 54388, inclusive, in
section 54303, in section 54311, in
Section 54354.5, in the second sentence
.
of subsection (b) of Section 54402, in
Section 54404, in the second sentence of
section 54418, in section 34422, in
Section 54424, in Section 54515, in
section 54521, in Section 54522, and in
the last sentence of section 54661, and
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any other provisions of the Revenue Bond
Law ot 1941 that are inconsistent with or
conflict with the city Charter shall not
apply to the issuance and sale of such
revenue bonds.
SECTION
2652.
santa
Monioa
Provisions.
The city of Santa Monica
revises,
amends,
and supplements the
provisions of the Revenue Bond Law of
1941 as follows:
(a) "Fiscal agent" as
used in this chapter shall
mean
any
fiscal
agent,
trustee,
paying
agent,
depository or other fiduciary
provided
for
in
the
resolution
authorizing
the
issuance
of
the
revenue
bonds.
(b) uResolution" as
used in this Chapter shall
mean,
unless
the
context
otherwise
requires,
the
instrument
providing
the
terms and conditions for the
issuance
of
the
revenue
bonds,
and
may
be
an
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indenture
.
resolution,
ordinance, order, agreement,
or
other
instrument
in
writing.
(c) Credit Enhancement
Agreements.
In connection with, or
incidental to, the sale and
issuance of the revenue
bonds, the City may enter
into such credit enhancement
or liquidity agreements, with
such payment, interest rate,
security,
default,
remedy,
and
other
terms
and
conditions
as
the
City
Council shall determine are
in the public interest.
SECTION 2653.
Name.
This Chapter
shall be known as the Santa Monica
Revenue Bond Act.
SECTION 2654.
Construction.
The
powers conferred by the provisions of
this Chapter are in addition and
supplemental to the powers conferred by
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the City Charter, or any other ordinance
or law.
SECTION 2.
Any provision of the Santa Monica Municipal
Code or appendices thereto inconsistent with the provisions of
this Ordinance, to the extent of such inconsistencies and no
further, are hereby repealed or modified to that extent necessary
to affect the provisions of this ordinance.
SECTION 3. If any section, subsection, sentence, clause,
or phrase of this Ordinance is for any reason held to be invalid
or unconstitutional by a decision of any court of any competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby
declares that it would have passed this Ordinance, and each and
every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without reqard to whether
any portion of the Ordinance would be subsequently declared
invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance. The City Clerk shall
cause the same to be published once in the official newspape~
within 15 days after its adoption. This Ordinance shall become
effective after 30 day. from its adoption.
APPROVED AS TO FORM:
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ROBERT M. MYERS -
city Attorney
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